TCC Concept Expands into Data Centers via NES Acquisition

TCC Concept Limited has announced a significant strategic move by acquiring a substantial stake in Natural Environment Solutions Private Limited (NES).

The company informed the stock exchanges about the issuance of 1,29,38,448 equity shares, each with a face value of ₹10, at an issue price of ₹352 per share. This preferential share issue was executed through a share swap arrangement, where TCC Concept Limited exchanged 824 of its equity shares for every one of the 15,702 equity shares held by NES’s 122 shareholders.

The company stated that this transaction was conducted in accordance with a special resolution passed by TCC Concept Limited’s shareholders during an Extraordinary General Meeting held on August 7, 2024. The deal was also in line with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and received in-principal approval from BSE Limited on August 22, 2024.

As part of this strategic acquisition, the Board of Directors of NES approved the transfer of 15,702 equity shares from 122 investors to TCC Concept Limited, effectively making NES a 98.78% subsidiary of TCC Concept Limited. This acquisition is a significant step for TCC Concept Limited, as it aims to expand and diversify its business into the rapidly growing data centre industry in India.

NES, incorporated as a private limited company, has an authorised share capital of ₹2,00,000, with a paid-up share capital of ₹1,58,950, divided into 15,895 equity shares of ₹10 each. As of July 13, 2024, NES’s net worth stood at ₹170.95 crore. The promoters and promoter group of TCC Concept Limited have shown keen interest in NES, acquiring equity shares through the preferential issue by way of the share swap arrangement.

The acquisition cost for TCC Concept Limited amounts to ₹455.43 crore, with each NES equity share valued at ₹2,90,048, including a premium of ₹2,90,038 per share. NES is poised to establish itself in the burgeoning data centre industry in India, with plans to set up a 5 MW capacity data centre in Hinjewadi, Pune.

Over the next three years, NES aims to develop and operate more than 100 MW of data centre capacity across India, capitalising on its expertise in building data centre infrastructure and unique designs that cater to the growing demand for edge computing. This acquisition aligns with TCC Concept Limited’s strategic objectives, enhancing shareholder value and positioning the company for future growth in the data centre sector.

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